CBN to Increase COVID-19 TCF to N300Bn

Central Bank of Nigeria (CBN) has said it will increase its Targeted Credit Facility for households and small and medium enterprises from N150 billion to N300 billion.

Godwin Emefiele, governor of the Central bank

This is even as the apex bank disclosed that it has disbursed a total of N149.21bn to SMEs and households across the country under the TCF.

“We initially created a N150bn Targeted Credit Facility for affected households and small and medium enterprises through the NIRSAL Microfinance Bank. Already, N149.21bn has been disbursed to 316,869 beneficiaries.

“Given the resounding success of this programme and its positive impact on output growth, we have decided to double this fund to about N300bn, in order to accommodate many more beneficiaries and boost consumer expenditure which should positively stimulate the economy,” Philip Yila Yusuf, bank’s director, Development Finance, stated.

Also, Godwin Emefiele, governor of the Central bank, has said Nigeria needs to build a solid digital economy to further drive growth.

He said it can be done by focusing on digital infrastructure (internet connectivity most importantly), digital literacy and skills, digital financial services, digital platforms and digital entrepreneurship and innovation.

Emefiele said as the biggest economy in Africa with one of the largest youth populations in the world, Nigeria is well-positioned to develop a strong digital economy.

“Consequently, there is need to focus on accelerating improvements across five fundamental pillars of a digital economy: digital infrastructure, digital platforms, digital financial services, digital entrepreneurship and digital skills,” the CBN governor said at a virtual seminar for financial journalists in Abuja at the weekend.

He was represented at the event by Edward Adamu, deputy CBN governor, corporate services.

He reiterated that the CBN did not place any new restrictions on the use of cryptocurrency in Nigeria.

“Our recent directive only amplified an earlier regulation on the subject of cryptocurrency. The recent directive became necessary to protect the financial system and the generality of Nigerians from the risks inherent in crypto asset transactions, which have escalated in recent times, with consequences on financial stability and implementation of monetary policy.”

Emefiele said as part of the CBN’s effort to drive change and development, it has over the last decade and half, worked to build an effective and efficient payment system.

He said the robust regulatory framework put in place by the bank opened up the payment system to innovation with several new players across in the following licensing categories – Payment Service Banks, Payment Terminal Service Providers (PTSP’s), Payment Solution Service Providers (PSSP’s), Mobile Money Operators (MMO’s), Payment Terminal Application Developers (PTSA’s), and Agent Banking.